STATE OF NEW YORK
________________________________________________________________________
864
2025-2026 Regular Sessions
IN SENATE(Prefiled)
January 8, 2025
___________
Introduced by Sens. BAILEY, MAYER, RAMOS, SEPULVEDA -- read twice and
ordered printed, and when printed to be committed to the Committee on
Housing, Construction and Community Development
AN ACT to amend the emergency tenant protection act of nineteen seven-
ty-four, in relation to capping the amount of collectible rent
increases due to major capital improvements at six percent of the
legal regulated rent
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 3 of subdivision d of section 6 of section 4 of
2 chapter 576 of the laws of 1974, constituting the emergency tenant
3 protection act of nineteen seventy-four, as amended by section 26 of
4 part Q of chapter 39 of the laws of 2019, is amended to read as follows:
5 (3) (a) there has been since January first, nineteen hundred seventy-
6 four a major capital improvement essential for the preservation, energy
7 efficiency, functionality, or infrastructure of the entire building,
8 improvement of the structure including heating, windows, plumbing and
9 roofing, but shall not be for operation costs or unnecessary cosmetic
10 improvements. An adjustment under this paragraph shall be in an amount
11 sufficient to amortize the cost of the improvements pursuant to this
12 paragraph over a twelve-year period for a building with thirty-five or
13 fewer housing accommodations, or a twelve and one-half period for a
14 building with more than thirty-five housing accommodations and shall be
15 removed from the legal regulated rent thirty years from the date the
16 increase became effective inclusive of any increases granted by the
17 applicable rent guidelines board, for any determination issued by the
18 division of housing and community renewal after the effective date of
19 [the] chapter thirty-nine of the laws of two thousand nineteen [that
20 amended this paragraph]; provided that the collection of any increase in
21 the legal regulated rent for any housing accommodation pursuant to this
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02114-01-5
S. 864 2
1 subparagraph shall not exceed six percent in any year from the effective
2 date of the order granting the increase over the legal regulated rent
3 registered pursuant to section twelve-a of this act, with collectibility
4 of any dollar excess above said sum to be spread forward in similar
5 increments and added to the legal regulated rent as established or set
6 in future years. In no event shall more than one six percent increase in
7 the legal regulated rent pursuant to this subparagraph be collected in
8 the same year.
9 (b) Temporary major capital improvement increases shall be collectable
10 prospectively on the first day of the first month beginning sixty days
11 from the date of mailing notice of approval to the tenant. Such notice
12 shall disclose the total monthly increase in rent and the first month in
13 which the tenant would be required to pay the temporary increase. An
14 approval for a temporary major capital improvement increase shall not
15 include retroactive payments. The collection of any increase shall not
16 exceed two percent in any year from the effective date of the order
17 granting the increase over the rent set forth in the schedule of gross
18 rents, with collectability of any dollar excess above said sum to be
19 spread forward in similar increments and added to the rent as estab-
20 lished or set in future years. Upon vacancy, the landlord may add any
21 remaining balance of the temporary major capital improvement increase to
22 the legal regulated rent. Notwithstanding any other provision of the
23 law, the collection of any rent increases for any renewal lease commenc-
24 ing on or after June 14, 2019, due to any major capital improvements
25 approved on or after June 16, 2012 and before June 16, 2019 shall not
26 exceed two percent in any year for any tenant in occupancy on the date
27 the major capital improvement was approved, or
28 § 2. This act shall take effect immediately.
